The significant thrift that the Newcastle owner has shown since he bought Newcastle about 52 months ago, seems to be finally paying off.
Mike Ashley – now having some success at Newcastle
Newcastle released their Mission Statement yesterday, and as far as we are concerned it makes for some good reading, and we are very pleased that Derek LLambias is now communicating with the fans, and we hope it continues.
Derek made it clear there would be no more trophy signings at Newcastle, but he also said the club was getting very close to breaking even, and would likely do that this financial year, which ends next June 30th.
And the profit and loss figures over the last four seasons seems to be going in the right direction.
Here are the figures for the last four financial years with the profit or loss, all losses until this financial year ends next June, when Newcastle are thought to be able to break even and we expect may even make a profit.
2008-2009 – £37.7M loss
2009 – 2010 – £33.57M loss
2010 – 2011 – £4.7M loss
2011 – 2012 – £0M – estimate is to break even or even make a profit
Alan Pardew even talked about the improving financial position of the Newcastle club after the game yesterday, and this is what he said:
“What we have in place is a sound financial structure, we go forward, and hope to achieve one of those seasons where people say we were one of those surprise teams and provided some entertainment here and there. We did today.”
“I’m hoping the owners start to get a bit more respect. I don’t think we’ll ever win everybody over for Mike and Derek and maybe myself, but at least we can look at it and say that we’re better off than most clubs from a financial position.”
“We have an owner who doesn’t want to go away, he wants to invest in the team but do it in the right manner. We are working really hard to bring in the best players we have with the finances we have.”
As we mentioned earlier today it would be nice to know what the club plans to do when they start making a profit, and whether those profits will be invested directly back into the club, which would be great if that was the case.
But Derek LLambias has said there will be no silly spending of transfer money that we saw by a number of clubs last summer.
It seems Newcastle are investing big time in two very important – youth and scouting.
And the expanded scouting under Chief Scout Graham Carr is already paying off handsomely, with Newcastle having made some great buys over the last eighteen months or so.
Those buys include Yohan Cabaye (£4.5M), Mike Williamson (£1M), Ben Arfa (£5M), Gabriel Obertan (£3M), Davide Santon (£5.3M), Danny Simpson (£0.5M) and free agents Demba Ba, Sylvain Marveaux, Mehdi Abeid and Dan Gosling.
So there are 10 good players brought in for around £19M – which is very good business for the Newcastle club.
And of course Newcastle have some great young players coming through the ranks like Shane Ferguson, Sammy Ameobi, James Tavernier, Haris Vukic, Michael Richardson, Jeff Henderson and Paul Dummet to mention only a few.
Whether you love or hate Newcastle owner Mike Ashley, the Tyneside club is looking in good shape at the moment, on many fronts.